Iran says it will soon start talks with two German companies to open
a major credit line of 12 billion Euros for the development of some of its
petrochemical projects.

file photo: Lordegan petrochemical plant

Hossein Alimorad, the director for investment affairs of the country's
National Petrochemical Company (NPC), was quoted by the media as saying that the
credit line will be dedicated for the development of several NPC projects.

Once they are in full swing, Alimorad said, the funds thus attracted will be
used for the development of petrochemical projects of private-sector companies,
Shana reported.

He added that Germany has already pledged to open a credit line worth 3 billion
Euros for Iran's petrochemical projects. This, the official added, can increase
to 6 billion Euros but Iran wants to increase it further to as high as 12
billion Euros.

Alimorad also emphasized that the policy of the Iranian government is to avoid
providing any state guarantees for economic projects including those in the
petrochemical industry. The same policy will be pursued for attracting funds
from Germany for the development of petrochemical projects, added the official.

He further emphasized that Iran is currently negotiating with companies from
China and South Korea as well as some others from Europe over opening new credit
lines for the development of petrochemical projects.

EElsewhere in his remarks, the NPC official said no major step has been taken to
open a credit line worth 10 billion Euros by Japan for the development of Iran's
petrochemical projects six months after signing a basic agreement to the same
effect. Alimorad added that fresh negotiations have started over a similar
scheme worth 0.64 billion Euros with another Japanese company.